Travel allowances for domestic and foreign business trips

When an employee works away from their usual workplace, they are entitled to travel allowances. These compensate for the expenses associated with a business trip, and they follow their own rules for both domestic and foreign trips. Correct settlement protects both the employee and the company and is an important part of payroll and accounting administration, which inspectors routinely check during audits.

What travel allowances include

The Travel Allowances Act defines several types of allowance to which an employee is entitled during a business trip. Their aim is to cover the actual additional expenses the employee has incurred by working away from their usual place of work.

• reimbursement of documented travel expenses,
• meal allowance according to the duration of the trip,
• reimbursement of accommodation,
• reimbursement of documented incidental expenses.

Domestic business trips

On a domestic trip, the employee is entitled above all to the meal allowance, the amount of which depends on the duration of the trip, divided into individual time bands. If free meals are provided during the trip, the meal allowance is reduced by the corresponding part. The meal allowance amounts are regularly adjusted by a ministry measure, so always check the current figures to make sure the settlement reflects the rates in force.

Foreign business trips

A foreign trip also carries an entitlement to a meal allowance in foreign currency according to the country of destination, and possibly to pocket money. It is important to determine correctly the time the state border is crossed, because it determines how the entitlement is split between the domestic and the foreign meal allowance. The basic meal allowance rates for individual countries are set by the ministry and change regularly, so they need to be checked before the settlement.

How to settle a trip correctly

The basis is a proper travel order and documents proving the expenses, for example tickets, accommodation invoices or receipts. The employee submits the settlement within the set deadline, and the employer checks it and pays it out.

1. issue a travel order before the trip,
2. collect the expense documents,
3. determine the time bands and the meal allowance entitlement,
4. settle and pay out within the deadline.

Tax and contribution implications

Travel allowances up to the amount set by law are not subject to tax or contributions and are a tax-deductible expense for the company. If they are provided above the statutory framework, the part above the limit is treated differently and may form part of taxable income. Keeping accurate records and supporting documents therefore protects the company in an inspection.

Using your own vehicle

If an employee uses their own motor vehicle for a business trip with the employer’s consent, they are entitled to reimbursement for the fuel consumed and to a basic allowance for each kilometre. The calculation is based on the number of kilometres driven, the consumption stated in the vehicle registration certificate and the price of fuel, which must be documented. The rate of the basic allowance per kilometre is set by a measure and changes over time, so always check the current figure. It is important to keep an accurate record of journeys and to retain the documents, because these are exactly the records an inspection checks. Correct settlement protects the company against its tax-deductible expense being challenged and ensures that the employee is fairly reimbursed for the actual costs of the trip. In practice, it therefore pays to have a single form for the vehicle logbook and for travel orders, so that all the necessary details are in one place and the settlement is quick and free of disputes.

If you want your travel allowances settled correctly and safely, Bilvao’s accountants will be happy to help you with the administration.

Current figures (2026)

Meal allowance and employee meals 2026

Figures valid for 2026; check the current wording.

Related articles: Annual health insurance reconciliation for employees, The minimum wage and its impact on the employer’s costs, Maternity and parental benefits: entitlement and calculation.

Frequently asked questions

Is the meal allowance reduced if the employee was provided with meals?

Yes. If free meals were provided during the business trip, the meal allowance is reduced by the corresponding part. Check the specific percentages and amounts in the measure in force, as they change.

Are travel allowances taxed?

Allowances provided up to the amount set by law are not subject to tax or contributions. The part above the limit is assessed separately. For the company, statutory allowances are a tax-deductible expense provided they are properly supported by documents.